"Proposed dividends" is shown in the balance sheet of a company under the head _______.

Provisions

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Reserves and Surplus

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Current Liabilities

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Other Liabilities

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Solution

The correct option is A Provisions
Proposed Dividend is the dividend declared which is to be paid in the next financial year. It is a liability for the company which is to be paid in the future. So, proposed dividend is shown under the head "provisions" in the balance sheet.

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Similar questions

Under what heads the following items on the Equity and Liabilities side of the Balance Sheet of a Company will be presented :

(i) Proposed Dividend

(ii) Unpaid/Unclaimed Dividend

(iii) Debentures

(iv) Matured Debentures

(v) Calls in Arrears

(vi) Sinking Fund

(vii) Provision for Provident Fund

(viii) Bills Payable

(ix) Public Deposits

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